Posted by James Strange on July 20, 2003 at 23:01:51:
I tell them that if you qualify for 100% NOO you don’t need it!
6 months reserves, good credit and good income. Why not put some down and get a lower rate.
New loan officer & Investor finds niche? - Posted by Donnie Kitterman
Posted by Donnie Kitterman on July 20, 2003 at 19:19:34:
My message is more directed to experienced, creative mortgage professionals that are successful in nonconforming purchases. (Ed I hope you?re reading this post)
Before I was a LO, I made the leap into REI about 14 months ago. Quickly I discovered that the LO?s I was using would fill me full of false hope on each potential buyer I sent and it seemed as though none of them would put much effort into getting my potential buyers approved.
Desiring a more fulfilling and professional full time gig anyway, I landed a job at a local & established mortgage banker/broker firm five months ago. I had my mind set on carving out a niche in creative financing so other local investors in need of a strong LO with the reputation of getting the deal done, would flock to. Not to mention- how it would benefit my own REI career (Oh, baby!). Sounded great, right?
I now realize why the vast majority of LO?s follow the path of least resistance! Less head aches, half the effort, and greater YSP (in most cases). Heck, I don?t even have the time to continue my own real estate investing career. So, I find myself at a cross road and I need to make some decisions. I want to stay true to my initial idea of becoming the local resource of creative finance, however banging my head against the wall for less money and twice the work is becoming more and more undesirable, especially now that my own REI is being neglected.
Any suggestions or advice any successful & creative mortgage professional could offer in the way of streamlining my efforts, boosting my gross profits, and filling a much needed service in my market would be greatly appreciated!!
Truly yours,
The now distressed LO
- Donnie Kitterman
Re: New loan officer & Investor finds niche? - Posted by Roger
Posted by Roger on July 20, 2003 at 21:38:51:
Donnie,
I understand, I’m in exactly the same position as you. I was an investor before I became a LO. I try to be as upfront as possible, and screen out the maybes and people who have been watching too many infomercials.
First,I tell them “If you credit qualify for 100% NOO financing, the rate is going to be higher than owner occupied 100% deals”. Second, I tell them there’s a discount point in addition to my loan fee,and get the seller to pay 2% toward closing costs. I’m a specialist, and my services aren’t free. Third, I ask where their 6 mos Piti reserves are. If they dont have/ dont want to pay my price, then let them waste someone else’s time.
Finally, you have to set boundaries and limits on your time if you want to be a RE investor. I put off adding more properties for the last 12 months due to the refi boom. I recently said “enough” and have just closed on my newest property. I will work 45 hrs as a LO and save the rest of my time for myself. Good Luck and stay focused